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What is Bitcoin?

People who invested in Bitcoin back in 2009 are now enjoying millions of dollars however the cryptocurrency poses significant risk.

Cryptocurrency is a digital currency which is built by using an encryption system called blockchain in order to create money and verify transactions. Moreover, cryptocurrencies are unregulated and anonymous as they are independent from any central bank or government.

As the cryptocurrencies are anonymous, the transactions cannot be traced therefore leading to the funds being a very attractive target for hackers.

Most people know how to invest buy cryptocurrencies on an exchange and then convert them back into a more feasible currency by selling them. Cryptocurrencies, like all other currencies, trade against other currencies such as the dollar, for example.

As the demand has been high, the prices to buy bitcoin and other virtual currencies have also been rising. However, cryptocurrencies can be very exciting investments if you can cope with the volatility.